TSB fined nearly £50m for IT failings
![TSB | Sharecast photo / Josh White dl banco sabadell tsb bank uk shop sign](https://img2.s3wfg.com/web/img/images_uploaded/e/9/dl-banco-sabadell-tsb-bank-uk-shop-sign_620x350.jpg)
TSB Bank has been fined nearly £50m after IT failings left millions of customers unable to access their accounts.
The Financial Conduct Authority and the Prudential Regulation Authority said they had fined the bank, which is owned by Spain’s Sabadell, a combined total of £48.65m for operational risk management and governance failures, including management of outsourcing risks.
In April 2018, TSB updated its IT systems, which included migrating corporate and customer services to a new platform. While the migration itself was successful, the new platform immediately started to experience technical failures. A "significant proportion" of TSB’s 5.2m customers were affected, leaving them unable access banking services both in branch and online. Some continued to be affected until December 2018.
The fine comes on top of £32.7m TSB has already paid out to customers in compensation.
Mark Steward, FCA executive director of enforcement and market oversight, said: "The failings in this case were widespread and serious, which had a real impact on the day-to-day lives of a significant proportion of TSB’s customers, including those who were vulnerable.
"The firm failed to plan for the IT migration properly, the governance of the project was insufficiently robust and the firm failed to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems."
Robin Bulloch, TSB chief executive, apologised again to customers, adding: "We worked hard to put things right for customers then, and have since transformed our business."
The FCA fined TSB £29.75m while the Bank of England's PRA fined it £18.9m following a 30% discount, applied after TSB agreed to resolve the matter with both regulators. Without the discount, the combined fine would have been £69.5m.